Government Affairs Committee Meeting

State of the State Budget:

A slowdown in our energy and agriculture sectors is leading to declining tax collections.  This means the Governor will likely have to order budget allotments – that will be at least 2.5% for general fund agencies.  This is a necessary step that must happen before the Governor can use the budget stabilization fund to cover remaining short falls.

The Legislature’s record high $14.4 billion budget for the two years that began July 1 was built last year on economic assumptions that have proven far too rosy.
Office of Management and Budget Director Pam Sharp last month ordered a new revenue forecast. The advisory council, a 17-member group made up of lawmakers, state officials and business leaders, set new oil price and production assumptions that will be used to craft the new forecast being done by the economic consultancy Moody’s Analytics.

The new forecast that’s expected to be unveiled Feb. 1 will show state revenues falling more than $400 million short of initial projections and enough to trigger budget cuts of 2.5 percent for most state agencies, Sharp said. The state’s Budget Stabilization Fund, which currently holds about $572 million, can be tapped by the governor when tax collections fall short of expectations, though only after agencies endure across-the-board cuts of up to 2.5 percent.
Pam Sharp will join us to review the new forecast and offer any insights she might have for the time ahead.  This will be a very informative meeting that will begin to shape what our priorities will be next session. You will not want to miss it!

Agenda:
1:30 p.m. – Introductions

• Bernie Dardis, Policy Vice Chair, GNDC

• Pam Sharp, OMB

• Bernie Dardis, Policy Vice Chair, GNDC